Which of the following is a potential consequence of a prolonged buyer’s market?

Which of the following is a potential consequence of a prolonged buyer’s market?

• A. Homeowners may struggle to sell their properties
• B. Home prices will continually rise
• C. New construction will spike dramatically
• D. Real estate agents will have higher commissions

Answer: (A)

A prolonged buyer's market typically indicates that there are more homes available for sale than there are buyers, leading to a situation where homeowners may face challenges in selling their properties. This imbalance often results in increased competition among sellers, which can cause properties to remain on the market longer and may force sellers to reduce their prices to attract buyers. Consequently, many homeowners may find it difficult to sell their homes at their desired price, leading to the conclusion that selling becomes a struggle. In a buyer's market, the conditions favor the buyers, which influences market dynamics in favor of lower prices and extended selling periods, rather than driving prices up or resulting in new construction booms. Therefore, the other responses reflect conditions that are generally more characteristic of a seller's market, where the opposite circumstances apply.

A prolonged buyer's market typically indicates that there are more homes available for sale than there are buyers, leading to a situation where homeowners may face challenges in selling their properties. This imbalance often results in increased competition among sellers, which can cause properties to remain on the market longer and may force sellers to reduce their prices to attract buyers. Consequently, many homeowners may find it difficult to sell their homes at their desired price, leading to the conclusion that selling becomes a struggle.

In a buyer's market, the conditions favor the buyers, which influences market dynamics in favor of lower prices and extended selling periods, rather than driving prices up or resulting in new construction booms. Therefore, the other responses reflect conditions that are generally more characteristic of a seller's market, where the opposite circumstances apply.